Clydesdale and Yorkshire banks to axe 1,400 jobs
Published: 30th Apr 2012 07:39:01
The Clydesdale and Yorkshire banks will cut 1,400 jobs by 2015, their owner has announced.
It follows a strategic review by the National Australia Bank (NAB) of its UK operations.
NAB chief executive Cameron Clyne said the decision was taken after a "significant downgrade in the growth prospects of the UK economy."
The banks will narrow their focus to consumer and small business lending in Scotland and the north of England.
NAB said its UK operations had made a loss of £25m between July and December 2011, compared to a £77m profit the same time a year earlier.
It blamed the fall on deteriorating commercial property loans and an increase in the cost of funding after Clydesdale's credit rating was downgraded last September.
It said it would close 29 of the banks' 73 Financial Solution Centres, which offer services to businesses and better-off individual investors, and merge nine others with local retail branches, adding that the changes would mainly affect operations in the south of England.
Six back office locations would also shut, it added in its statement.
The bank said it expected the closures and restructuring to save it about £74m a year by 2015.
Following the cuts, the workforce of NAB's UK operations will stand at 6,900, down from 8,300.
NAB bought Clydesdale Bank in 1987, followed by Yorkshire Bank in 1990. The banks' operations were merged by NAB in 2001, although the two names have been retained.
Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire, and has 185 retail branches, while Glasgow-based Clydesdale has 152 outlets.
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Harvard CitationBBC News, 2012. Clydesdale and Yorkshire banks to axe 1,400 jobs [Online] (Updated 30th Apr 2012)
Available at: http://www.ukwirednews.com/news/1425394/Clydesdale-and-Yorkshire-banks-to-axe-1-400-jobs [Accessed 7th Mar 2014]
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